Business Plan: Ideal Taxi - Online Cab Service in Kerala, India

This report details a comprehensive business plan for Ideal Taxi, an online cab service operating in Kerala, Thrissur, India. It begins with an introduction outlining the business idea, coherence, rationale, and objectives, followed by a literature review that examines the industry landscape, market size, competitors, and marketing mix. The report then explores the business model canvas and key issues. The methodology section explains the research approach, including primary and secondary research methods, and feasibility studies. The plan includes market analysis, target market identification, and positioning strategies, aiming to establish Ideal Taxi as a leading online cab service by focusing on customer satisfaction through efficient and affordable services. The report also covers company details, ownership structure, and marketing strategies to ensure business success and market penetration.

Business Development
Plan

Table of Contents
CHAPTER 1 INTRODUCTION.....................................................................................................1
Title.........................................................................................................................................1
Coherence/ Justification.........................................................................................................1
Rationale.................................................................................................................................1
Scenario Choose.....................................................................................................................1
Aim and objectives.................................................................................................................2
Background.............................................................................................................................2
Structure of Project.................................................................................................................2
CHAPTER 2 LITERATURE REVIEW..........................................................................................3
Industry Review......................................................................................................................3
Evaluation and review of industry size, growth rate, competitors.........................................3
Explanation to the business idea.............................................................................................4
Marketing Mix........................................................................................................................6
Segmentation..........................................................................................................................7
Target Market.........................................................................................................................8
Positioning..............................................................................................................................8
Knowledge and comprehension of industry...........................................................................9
Theories of the businesses model...........................................................................................9
Business model canvas.........................................................................................................10
Principle issues associated to topic.......................................................................................11
CHAPTER 3..................................................................................................................................12
RESEARCH METHODOLOGY...................................................................................................12
Selection of model................................................................................................................12
Selection of clear aims..........................................................................................................13
Selection of research methodology......................................................................................14
Research method knowledge................................................................................................14
Primary and secondary research...........................................................................................14
Feasibility.............................................................................................................................15
Critical evaluation of methodology......................................................................................15

Research limitation...............................................................................................................15

CHAPTER 1 INTRODUCTION
Title
To start a business of online cab service in Kerala, Thrissur, India: Company Ideal Taxi.
Coherence/ Justification
The cab services has become a trend across the world. All the individual opt to use cabs
for travelling as not each and every individual could afford to have cars. It is also suitable for
travellers who can enjoy their trip through the cabs. So, here business idea has been taken for
starting an online cabs service for Kerala, Thrissur and India. Through which they will be
rendering an online cab services to their consumer. The 15% of commission has been taken by
company from the drivers who are running the taxis and let their consumer through company's
online bookings for cabs. They vision of Ideal Taxi is to deliver fast and appropriate services at
minimum pricing to their consumer so that their consumer can be satisfied greatly.
Rationale
Cab services has become more popular among India as well. The more and more
individual are opting the cab services for travelling from one place to another. It attracts all age
group people to the great context it enhances their interest. Now each and every individual are
using online services through which they can use various services easily (Teece, 2018). This save
waiting time of an individual they can easily book cab for them from anywhere across India. The
Ideal Taxi render online services for cab to the consumer across India, Kerala and Thrussia. In
these country demand of cab service is high. The individuals who are working late at night needs
to travel a long lonely then it is the best services which can be opted by them. There are over
millions of individual who uses cab services for travelling across India.
Scenario Choose
India is the most populated country. As per the size and population of nation it has wide
scope for company to establish their new business. While comparing the Kerala, Thrussia and
India with other nation it is richer and had more opportunities as compare to other country. Each
and every individual are depended on cab services. There is much amount of population and
employment across the Kerala and Thrussia which enhances the demand of the cab services into
the Kerala. As individual need to use cab for late night shifts of office. As wide range of
population within in country raised demand of cab services within the state. In the present
scenario it has been identified that there are many companies which render cab services across
1

the country. And they are successfully running their business in country (Chaffey, Hemphill and
Edmundson-Bird, 2019). It is very helpful in saving time of individual and rendering them quick
and safe cab services. And now individual are more used to towards online cab services. The
Ideal taxi will also be offering an online service of cab to their customers.
Aim and objectives
Aim-
To start a business of online cab service in Kerala, Thrissur, India: Company Ideal Taxi.
Objectives-
 To analyze current market of online cab services for Kerala, Thrissur, India.
 To identify the target market for company.
 To evaluate feasibility of online cab services in India.
Background
With the advancement of technology there are many business which have been emerging
and starting. So further it enables to render new technologies and ways for utilizing the
technologies into the business. Individual are becoming more busy in their daily routine and
spending more money on the luxurious lifestyles as per the trends. So that's trend of cab services
has been become more popular among individual who are prevailing to opt these services. It
saves their time, enjoy the best class services with the minimum charges. Many countries have
this type of services which is mostly used by every second people within the country. So more
and more individual are attracted to book the service of cab wherever they need and thus they
can travel lonely also without any risk. As they render great services to customers.
Structure of Project
The specific research structure would be followed in this project for making work and
researching more related and effective for organization to utilize the information effectively.
This structure will be useful for company and reader for getting appropriate understand on the
gathered data and information (White, 2016). In the starting stage it includes brief introduction to
the new business idea which is cab services through which they will be providing the online cab
service to their consumer. With the help literature review rationale of business to the company
has been explained. There are some research method taken by company for conducting the
research which helps them to analyze that this business idea is best for company or not if not
then what some other changes are to be implemented into the business as per the trend among the
2

marketplace. Further through analysis result has been interpreted that contain potential findings
for the project.
CHAPTER 2 LITERATURE REVIEW
Industry Review
According to the Bansal and Rao, (2018) India is country where cab are majorly utilized
across urban areas. The industry in India had quite diverse and unique as compare to other
country. It is growing industry which is attracting many of the start-ups for joining with the huge
potential. This business can be segregated into pre-aggregator era and post-aggregator era. The
cab industry is classified in organized and unorganized business. The industry as whole is not so
formal till 2007, the most of the businesses are handled by particular car owners. Indian cab
market stood at $6.4 billion in 2016 and is to be forecasted for growing at CAGR of 13.7%
during the year of 2017-2022 for reaching $14.3 billion. Increasing demand for cab services in
India, Kerala and Thrissur has been associated with changing lifestyle of the travellers and rising
disposable income of the customers which is particularly in Tier-I and Tier-II cities. The
increasing trend of online cab render hassle free ride to the consumer with additional intangible
and tangible offering that are convenience for booking through phones and laptops, air
conditioning, skilled and educated driver, 24*7 service, various payment options, consumer
support, vehicles with attached GPS and electronic fare meter etc.,
Evaluation and review of industry size, growth rate, competitors
As per the Rawal and Sisodia, (2017) Some main competitors who are operating in India
are Uber India technology Private Limited, ANI Technologies Private Limited, Wings Travel
India Management Private Limited, Meru Cab Company Pvt. Ltd., Zoomcar India Private
Limited, Carzonrent (India) Pvt. Ltd, Saavari, AVIS, Voler Car Private Limited and Fast Track
Call Cab Private Limited. For performing the study, the cab research have been conducted
through primary as well as secondary method of research. The exhaustive list of various taxi
operator across India. Primary research surveys includes e-mail responses and primary call etc.,
with the above mentioned companies. While conducting an interview the respondents were asked
about the main competitors. With the help of this technique, the research would include several
companies that couldn't be identified as per the limitation of secondary research.
The market size will be calculated by utilizing bottom-up technique, in which volume
sales data of taxi operator for various type of vehicles such as Sedan, Hatchback, MUV/SUV and
3

Premium/Luxury will be recorded and forecast for further years. The Cab market size of India is
estimated at 1.9 million cabs assumed for generating $10-$11 billion of revenue till 2019.
Unorganized small fleet account operator for 91% of market share in term of registered fleet for
taxi. Arrival of the on-demand taxi players into the industry helps to organize these market to
great extent. The user base of on-demand taxi in India in urban areas with income of >25,000
INR ($350) per month. They had gain growth in pool/share rides which let the Uber and Ola to
gain 78% of revenue from this budget ride segments.
Illustration 1: Market size
(Source: Cab Service in India, 2020)
Explanation to the business idea
As illustrated by Chalia, (2017) Starting the new business is very critical task as
individual has to care for several things for achieving success in marketplace and sustain for long
term. If it has been not done properly many difficulties could be faced by companies to manage
the business activities, in thus further entrepreneur will be facing loss. India is the growing
country which had great scope for cab service business idea. Individual and travellers of India
are opting cab services through their mobile phone and travelling across the desired destinations.
As the technologies are enhancing individual are moving towards adopting various source which
let them to save their time and enjoying additional services which are given by the cabs to their
customers. As the growing trend and increase in individual disposable income in urban cities
more and more individuals are using the cab services for travelling from one place to another.
4

The cab service can be enjoyed by anyone at any place through mobile application of various cab
companies. And they also provide the tracking system through which an individual can easily
optimize in what duration their cab will arrive at the located place and how much amount they
had to pay for it.
Objective
Objective of Ideal taxi is to become the best performer in taxi industry and providing fast
services to the customers. It aims to gain 40% of revenue in upcoming two years.
Mission
Mission of Ideal Taxi is to offer fast and safe ride to their customer with minimum fare
rates.
Key to success
Ideal Taxi will focus on urban cities where more and more individual could serve cab
services rendered by company to their customers. Convenient access to the application will
another significant point of business as this would help Ideal Taxi for gaining attention of the
wide range of public. The services offer by organization will be unique as they will be providing
fare meter, air conditioner, GPS into the cars which can be utilized by consumers. In addition to
this, driver of the cab are skilled, well-educated, polite behave, quick services, minimum pricing
will be USB of company which are rendered to their customers and their needs & demands will
also be further taken cared while provisioning them cab services.
Company details and ownership
Ideal taxi will be new business where online cab services are given to the consumers
across the India, Kerala and Thrussia. They will be providing 24*7 cab services to the customers.
The drivers of cab are self-employed and thus company will be charging 155 of commission on
each and every booking. It will be sole trade company, there will be no partnership at the
primary level. The loss and profits all would be bearded by the owner of company.
5

Illustration 2: Market share of cab companies in India
(Source: The evolution of Indian Cab market, 2020)
Marketing Mix
As per the Depusoy, Del Rosario and Mercado, (2018) Marketing has an essential role in
the every business success. It is the tool which is utilized by businesses for promoting their
product and services to the consumer and creating a brand awareness among the individual
across marketplace. It is useful for business in establishing across the new market effectively and
successfully. The cab market of India is very wide hence if any company enters into the industry
then there are more chances of gaining huge success as people like to utilize the cab services to
the great extent. Ideal taxi will be marketing their product through unique way, as they are
planning to promote and market their services through social media so that they can easily gain
interest do consumer towards the companies services. By conducting the marketing activities by
Instagram, Facebook company would gain attention of wide range of audience across country.
Pahwa and Goyal, (2019) stated that product is essential element which is helps company to gain
success in their new business, if organization is rendering the satisfactory services to their
consumers through this they can gain huge success and sustain in market for long term. Ideal
Taxi will be offering the great services to their customers with the minimum pricing. They would
be taking care of services which are given to the consumers. The needs and demands of
customers will be taken care by them and offering quick services to the consumer. Main agenda
6

of Ideal taxi is to offer satisfactory and quick services to the consumer so that the time of
consumer could be saved, and they can easily reach to the preferred destinations. Companies
would also maintain the safety of the customer who are travelling through cab. This tactic used
by company will help them to gain positive result for business and gaining huge success in
marketplace. They will also provide sharing/ pool ride to the customers.
Ideal taxi will be charging minimum pricing for the cab services which will be utilized by
the customers. The consumer can book the cab through the online application of the company,
and they will also be giving free points on referring the application to the another individual.
This free points can also be used by individual for further booking of cab. They had maintained
the minimum pricing for per kilometres which would be paid by the consumer.
The places which will be used by Ideal taxi will be the urban cities and the cab will be
available at all market areas where they can easily reach to the consumer when cab is book by
them. They will be trying to the have their 2-3 cabs available in each area. So that individual can
easily opt the cab service by the online application of Ideal Taxi. They offer services to their
customer 24*7 so they will easily give quick services to them. The cab service will be available
to the all places situated in the state and individual can book the cab by selecting the location in
the application.
Segmentation
According to Cramer and Krueger, (2016) cab service business is the potential business
idea that works to serve consumer’s well. Market segmentation is the process of choosing the
right consumers out of available population. This aids companies in targeting the right
consumers those who have interest in firm’s services. Cab service business will have close focus
over the demographic segmentation strategy. As consumers will be targeted on the bases of their
age and income. India is the country where many young age people use online cab services and
also middle class people have interest in this kind of services. This target market is able and
willing to easily spend money to get safe and fast travel experience. Gender is another bases of
demographic segmentation, as online cab services business will also focus on women because
many girls and women cannot drive safe hence they prefer to choose this medium for travelling.
This business will pay attention on specific needs of consumers hence it has one objective to
drop customers to their desired location promptly, safely and comfortably. Young age people can
easily use internet to book their cab and can make payment online. Many middle class people are
7

using debit and credit cards hence they can make online payment. Hence this segmentation of
this cab company will be better in gaining attention of mass audience and attracting them
towards the products and services. Apart from this, customers will also have facility of travel
insurance, if some causality occur then they can get immediate amount as compensation for the
same.
Target Market
As per the view of Chalia, (2017)The target matter matters a lot in any kind of business, if
wrong consumers are being targeted then it may affect success of business to great extent. Ideal
Taxi will target two markets: direct consumers and commercial charge accounts. Commercial
accounts are such clients in which company pays fixed amount to cabs to drop their passengers
such as private or public companies hire cabs for their employees to drop them from one place to
other. Many airline and hotel companies have made tie-up with cab business so that these cabs
can serve their consumers well and can pick them or drop them on desired locations. Direct
customer accounts are such people those who directly use internet and book cabs for themselves
only. In Kerala many people are doing night shifts and office arrange cab services for them
hence target market of Commercial charge accounts and direct consumers are perfect for this
business. India is the country where number of people are high and public transports are not that
much convenient. Apart from this, buses have fixed time and even these are unavailable at the
time of occasion and holidays. In Asia, use of mobile applications is very high and taxi demand
is also increasing with rapid speed. Ideal taxi has planned to introduce one smartphone mobile
application where people can GPS to track taxi and book them. Cab will reach to the desired
location within limited period of time and customers will have option to pay payment for their
services either prior to experience services or after that.
Positioning
As illustrated by Maheshwari, (2017) The Ideal Taxi will position themselves as
luxurious taxi services offering which are afforded by their consumer for travelling. The
competitive edge of cab service is based on incentive program which reward driver when it has
been offered with high quality services, gaining repeat consumer as well as acting as great
ambassador for company. Application of cab provides the rating system through which their
consumer can rate the services given driver. This rating can be start from 1-5 star that represent
the level of satisfaction by consumer. The five star rating represent great services given by driver
8

whereas the single star state low level satisfactory services to the consumer. The driver who has
high number of rating can place themselves at top and further earn bonus of $ 500 (INR) which
is given to them at the end of every month. Driver who is gaining consistently unfavourable
rating, and are not receiving any of the bonus then their contract will be terminated by Ideal
Taxi. Through this strategies Ideal Taxi can effectively position themselves within the market.
The company can further create a brand value within the marketplace and render an best profit
out of it. If brand position is maintained by the Ideal Taxi within marketplace then they will gain
huge revenue and profit. And thus further they will sustain in marketplace for long term. By
rating system they can effectively analyze where they are lacking behind and as there services
are great or not. If the review of consumer are not so good then they will implement changes into
it and so further they can render satisfactory services to their consumers effectively.
Knowledge and comprehension of industry
According to the Dhawan and Yadav, (2018) The Cab industry have been exploring so
much day by day. As the individual had become more addicted to the technologies and fast life.
Each and every individual is wants save their time. The individuals who are working late at night
needs to travel a long lonely then it is the best services which can be opted by them. From past
years this industry had explored so much and had gain huge amount of attraction towards the cab
services. The candidates are getting more advanced and opting smart services through the mobile
application at one click. Thus, there are many countries which are operating business under this
industry. Some popular companies are running their business under this sector some of them are
Ola, Uber etc. This industry had wide scope further for companies to operate their business
activities there.
Theories of the businesses model
As per the Beynon-Davies, (2018) There are many various method and process which can
be utilized by companies who are entering into the market of India. Business model of Ideal Taxi
would be great as it is concerned with the recent trend among the youth and job class peoples. So
the transformational process in India would be systematic which will not be harming any of the
individual and rendering the safe rides to their consumers. They will be using the partnership
model for their business which is one of the better for them as they are running their business
into different states of the India for such they had to franchise their company with partnership
alliance so that they can easily operate their business and further expand it into the other states as
9